1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lora16 [44]
3 years ago
6

Identify whether each statement in the following table best illustrates the concept of consumers’ surplus, producers’ surplus, o

r neither. Statement Consumers’ Surplus Producers’ Surplus Neither Even though I was willing to pay up to $209 for a watch, and even though the seller was willing to go as low as $196 in order to sell it, we couldn't reach a deal because the government imposed a price ceiling of $190 on the sale of watches. Even though I was willing to pay up to $39 for a jersey sweater, I bought a jersey sweater for only $32. I sold a used laptop for $199, even though I was willing to go as low as $190 in order to sell it.
Business
1 answer:
Blizzard [7]3 years ago
5 0

Answer:

1. Neither ; 2. Consumer Surplus ; 3. Producer Surplus

Explanation:

Consumer Surplus is the difference between a good's price paid by consumer, & maximum price the consumer is willing to pay for the good.

Producer Surplus is the difference between a good's price received by a seller, & minimum price at which the seller is willing to sell the good.

1. Willing to pay $209 for watch, buyer willing to sell at $196, no trade as price ceiling at $190 : It illustrates neither concept as transaction has not actually occurred, so no price established.

2. Willing to pay $39 for sweater, purchased it for $32 : It illustrates 'Consumer Surplus' case = $7 , as it shows difference between maximum willingness to pay by buyer ($39) & the actual buy price ($32)

3. Willing to sell laptop at $190, sold it at $199 : It illustrates 'Producer Surplus' case = $9 , as it shows difference between minimum willingness to sell price ($190) &  actual sale price ($199)

You might be interested in
A jewelry store has 107.25 ounces of 14-carat gold in stock
horsena [70]

Answer:Superior Exchange in New Haven is a High Paying Buyer and Pawnbroker specialist who are among the top Jewelry Buyers, Precious Metal Buyers, Electronics Buyers, Gold Buyers, Art Buyers and Antique Buyers in Connecticut. Aside from buying, selling and Pawning on anything of value. We strive to be a pawnbroker specialists you can trust, where instant payment is always available with as many Pawns as possible.

Explanation:

5 0
2 years ago
Tangshan Industries has issued a bond which has a​ $1,000 par value and a 15 percent annual coupon interest rate. The bond will
mina [271]

Answer:

B. 10.79 percent

Explanation:

yield to maturity = [150 + (1250 - 1000/10)]/[(1250 + 1000/2)]

                            = 10.79%  

Therefore, The yield to maturity on the Tangshan Industries bond is 10.79%

6 0
3 years ago
Several factors affect a firm’s need for external funds. Evaluate the effect of each following factor and place a check next to
Studentka2010 [4]

Answer:

1.

  • The firm increases its dividend payout ratio.

This will increase the need for external funds because with more funds going towards dividends, there will be less funds available to fund operations. The company will therefore be more probable of being in need of Additional funds.

  • The firm’s inventory turnover decreases, with no effect on the sales forecast.

If the firm's inventory turnover increases, it means that the firm is taking longer to sell off inventory. This will mean that the company will have to invest more in working capital to maintain these inventory levels. This will lead to a higher probability of them needing additional funds.

2. Yes, dividends still affect a firm’s AFN even though they are paid out of after-tax earnings.

Even though they are paid after-tax, they still eat into the funds that the business can be able to set aside to fund operations. So when dividends are paid, the need for AFN increases as well.

5 0
3 years ago
Target profit is $100,000; fixed overhead costs are $120,000 and fixed selling and administrative costs are $50,000. If total va
vlada-n [284]

Answer:

40%

Explanation:

The markup percentage to the variable cost using the variable cost method can be obtained by dividing the addition of the target profit and total fixed cost by the total variable cost as follows:

Total fixed cost = Fixed overhead costs + Fixed selling and administrative costs = $120,000 + $50,00 = $170,000

The markup percentage to the variable cost = (Target profit + Total fixed cost) / Total variable cost = ($100,000 + $170,000) / $675,000 = $270,000 / $675,000 = 0.40, or 40%.

Therefore, the markup percentage to the variable cost using the variable cost method is 40%.

3 0
3 years ago
Suppose a country has government expenditures of $3,500, taxes of $2,200, consumption of $9,000, exports of $2,500, imports of $
TiliK225 [7]

Answer:

The correct option is C ,$15,300

Explanation:

GDP is a short form of Gross Domestic Product which is an indicator of total goods produced in an economy in a period of one year.

Using the expenditure method,GDP van be computed using the below formula:

GDP=C+I+G+(X-M)

C is the consumption in the economy which is $9000

I is the level of investment at $3,000

G is the government expenditure of $3,500

X is the export of $2,500

M is the import of $2,700

GDP=$9000+$3000+$3500+($2500-$2700)

GDP=$15,300

Hence the GDP is $15,300

8 0
3 years ago
Other questions:
  • Which of the following is TRUE regarding​ computer-aided design?
    12·1 answer
  • Angola United Theaters, Inc. is considering opening a new movie theater in Angola, Indiana. The relevant cost of capital is 8%.
    10·1 answer
  • Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock
    10·1 answer
  • Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of
    9·1 answer
  • ABC uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retai
    13·1 answer
  • (Preferred stock valuation​) You are considering an investment in one of two preferred​ stocks, TCF Capital or TAYC Capital Trus
    7·1 answer
  • I forgot my user name and password. Can u help me?
    10·2 answers
  • California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $35 per share. Later in the year, the compa
    6·1 answer
  • Suppose the marginal propensity to consume is 0.8 and the government cuts taxes by $40 billion. real gdp will _____ by _____.
    8·1 answer
  • Setting objectives and identifying methods to achieve those objectives is called.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!